IMPROVING THE MANAGEMENT OF LEARNABLE FUNDS IN COMMERCIAL BANKS IN NIGERIA. (A COMPARATIVE STUDY OF TRADE BANK (TB) AND INLAND BANK OF NIGERIA (IBN)

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ABSTRACT

This study centered on improving the management of loanable funds in commercial banks. The study was comparative in nature, using Trade Bank of Nigeria (TBN) and Inland Bank of Nigeria (IBN).

These two banks were chosen because of their accessibility, high rate of mobilization of deposits and loan defaulting.

The major instrument used for data collection included oral interviews, bank records of daily operations, annual report and statement of accounts. Four hypothesis were formulated in line with the statement of the problems. The data obtained was organized and analyzed with the use of chi square test for goodness of fit, coefficient of correlation, percentage of loan chart and component bar chart were also used respectively where necessary.

The study finally revealed if the incidence of loan default was continuously on the increase/decrease and if such increase/decrease was more in government owned banks or in privately owned banks. It also saw if such increase/decrease was higher/lower in relation to deposit mobilization.

In order to find solution to the problem, it was suggested that banks should adhere strictly to the principles of good lending, improve on security valuation, ensure that men of high integrity are employed at the credit department and emphasize on prudent supervision and control of loan accounts. Other suggestions were purely focused on advisory and credit worthiness for effectiveness and proper management.

TABLE OF CONTENTS

PAGE

TITLE PAGE

CERTIFICATION

DEDICATION

PREFACE

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION

1.1Background of the study

1.2Statement of the problem

1.3Objective of the study

1.4Significance of the study

1.5Research question

1.6Hypothesis

1.7Scope and limitations

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1Commercial Banking in Nigeria: Origin and development

2.1.1History of Trade Bank Plc

2.1.2History of Inland Bank

2.2Commercial banks and economic development

2.3Banking credit facilities and the Nigerian Economy

2.3.1The bank loans and advances

-Overdrafts

-Short term loans

-Medium term loans

2.4Commercial Bank lending criteria

2.4.1Basic Principles of lending

2.4.1.1Safety of advance

2.4.1.2Suitability of advances

2.4.1.3Profitability of advances

2.4.2Factor that influence commercial bank lending policies

2.4.2.1Capital position of banks

2.4.2.2The risk and profitability of various types of loan and advances

2.4.2.3Suitability of deposits

2.4.2.4The position of the Economy

2.4.2.5Monetary and Fiscal policies

2.4.3The commercial bank lending policies

CHAPTER THREE: RESEARCH METHODOLOGY

3.1Source of data

3.2Study area

3.3Sample (Specimen Banks)

3.4Analytical techniques.

CHAPTER FOUR: PRESENTATION AND ANALYSIS

4.1Test of Hypotheis one

4.2Test of hypothesis one

4.3Test of hypothesis one

4.4Test of hypothesis one

CHAPTER FIVE: SUMMARY OF FINDING, RECOMMENDATION AND CONCLUSION

5.1Causes of loan default in Commercial bank lending

5.1.1Bank customers.

-Lack of strict adherence to the principles of good lending

-Poor credit analysis

-Lack of supervision and control of loan account

-Dishonest Bank officials

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IMPROVING THE MANAGEMENT OF LEARNABLE FUNDS IN COMMERCIAL BANKS IN NIGERIA. (A COMPARATIVE STUDY OF TRADE BANK (TB) AND INLAND BANK OF NIGERIA (IBN)

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